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Business assets insurance
What does business assets insurance cover?
Every business owner knows just how important it is to look after your assets, and the best way to get the right level of protection in place is by taking out insurance cover. Business assets insurance, also known as business asset protection insurance, offers a crucial form of protection for many businesses. If your business assets were to be damaged or destroyed, business assets insurance ensures you have the cover you need to survive financially.
You can take out cover for your building and contents, business vehicles and protect against machinery breakdown. Business interruption insurance can protect you against the loss of profits, while burglary cover ensures your hard work isn’t destroyed by thieves. Read on to find out more about the benefits this type of cover has to offer.
What is business assets insurance?
Business assets insurance offers crucial protection for a wide range of business assets. It is compulsory for all business to insure any business vehicles for third party injury liability. However, there are a range of different policies available when it comes to commercial motor vehicles and fleets:
- Third party. If you’re legally liable for causing vehicle or property damage to a third party, this policy will provide cover for compensation and your legal costs.
- Third party, fire and theft. This covers you against the aforementioned events and also against fire and theft of your vehicle.
- Comprehensive. Comprehensive policies provide cover for everything listed above, as well as for damage you cause to your car in an accident.
There are also a range of other types of insurance you can consider in order to protect your business assets. This includes cover for your buildings, contents and stock against damage from fire and other perils, as well as burglary cover and business interruption insurance.
Other available options include: electronic equipment cover, employee dishonesty cover, farm insurance, machinery breakdown cover and insurance for goods in transit.
Business assets insurance protection
Building and contents
A range of events can have a negative effect on your business, such as, storms, earthquakes, lightning, explosions and impact. Business assets insurance offers cover for your buildings, contents and stock in the event of any of these incidents occurring.
As the name suggests, this option offers cover for your business against burglary. Especially important for retailers or those businesses who have unattended premises, burglary cover protects you against theft of goods following forcible entry, theft by a person hiding on your premises until you leave, and theft committed under threat of assault.
However, it’s important to point out that shoplifting is typically not covered under this section.
Also known as loss of profits insurance or consequential loss insurance, business interruption cover offers important protection in the event that your business suffers damage from the risks listed under the building and contents cover section.
In such cases, your business may be unable to trade or may only be able to operate at a reduced capacity for a certain period of time, but you’ll still need to manage ongoing expenses such as rent, utilities and employee wages.
Business interruption insurance is designed to cover you against any financial loss you may suffer as a result, ensuring your business can return to the financial position it was in before any material damage took place.
This type of insurance is designed to protect your business from the fraudulent or dishonest acts committed by employees. This includes cover for the loss of money, goods and other property. Also known as crime protection insurance, fidelity guarantee insurance is important for any company concerned with employee dishonesty.
This form of cover offers protection when mechanical and electrical plant and machinery belonging to your business break down. Repairing or replacing a motor or other mechanical piece of a machine can be quite costly, so this policy provides the financial protection you need.Back to top
Benefits and features of business assets insurance
Assets are an important part of any business and ensuring that those assets are looked after is crucial to the future financial survival of your business. Even though the chances of something going catastrophically wrong may be small, all it takes is one event — it could be a fire, a storm, a mechanical failure, car accident, brazen burglary or dishonest employee — to cause enormous financial damage to your business.
However, if you take out insurance cover for your most important assets, you don’t have to worry about unexpected disasters having a huge financial impact on your business. It can ensure the survival of the business you’ve worked so hard to build, providing the financial protection you need to get back on track when something goes wrong.
How are business assets insurance premiums calculated?
When assessing your application for business assets insurance, insurance providers will take a number of factors into account to help them calculate your premiums. Of course, this process will involve assessing the risks you face and the likelihood of you making a claim, with higher risk businesses obviously attracting higher premiums. An insurer will look at factors like:
- Your claims history. How many insurance claims have you made in the past?
- Your nominated sum insured.
- Where your business is located. For example, storm damage could be a more prevalent risk in certain parts of the country.
- The material used in the construction of your business buildings.
- The industry you work in and the nature of your business.
- Any security measures you have in place at your business premises, for example alarm systems and security patrols.
- Whether you elect to pay a higher excess in the event of a claim, which can lead to a reduction in your premiums.
Business assets insurance general exclusions
Just like with any other type of insurance, business assets insurance policies will also feature a range of important exclusions. While these may differ from one policy to the next, typical exclusions include:
- Any claims relating to war, rebellion, revolution, insurrection or invasion.
- Claims related to nuclear material in any form.
- The lawful seizure or confiscation of the property insured.
- Any deliberate dishonest, fraudulent or criminal act committed by you.
- Incidents occurring outside the territorial limits of your policy.
- Consequential loss.
- Legal liability to pay compensation or damages.
- Damage caused by faults or defects known to you.
- Loss or damage to any appliance, machinery or equipment which is a computer.
- Claims relating to terrorism.
- The total or partial destruction, corruption or erasure of electronic data.
Apply for business assets insurance
Business assets insurance is a vital form of cover that offers much-needed financial protection for your business. It can be the key to ensuring the future survival and financial strength of any business, so make sure to compare a range of policies and seek expert advice to ensure you end up with the right level of business insurance cover for your needs.Back to top
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